Fear and uncertainty weighed heavily on the markets Friday as investors who viewed almost everything as too risky embarked on a sell-off. Despite the overall negative sentiment and the release of a slew of weak manufacturing data, silver had a bullish day, closing up nearly $1.00 at $28.68 on the New York spot market. Can investors expect gains for silver to be sustained amid a slowdown in manufacturing?
Of late, silver has been trading with industrial commodities. As a result, the metal has been susceptible to concerns about global economic conditions and prices have been in a downtrend. However, on Friday investors ignored reports that suggest the world’s factories are slowing down.
“The rate of expansion in global manufacturing production slowed sharply in May, as growth of total order books remained lackluster and international trade volumes posted a marginal decline,” said David Hensley, director of global economics coordination at JP Morgan.